Thursday 6 April 2017

Russia to increase grain and milk production by 6% and 3% by 2020

Russia has approved amendments to the state program of agricultural development for 2013 – 2020 which cuts agricultural support from 215 billion roubles this year to 194 billion roubles by 2020. 

At the same time the programme sets the plan to increase grain production from 104mmt this year increasing to 110mmt in 2020 and milk to go from 31.1mmt to 31.9mmt.

That’s an increase of 6% and 3% respectively which looks like a number an accountant would come up with to help balance the budget.

The state program also includes rules for granting and allocating subsidies from the federal budget to the regions and will target the following areas:
  • Provision of decoupled support to crop production;
  • increase productivity in dairy cattle;
  • contribute to the achievement of targets of regional programs for the development of agro-industrial complex;
  • reimbursement of interest on investment loans in the agricultural sector;
  • reimbursement of the direct costs incurred for the creation and modernization of agro-industrial complex, as well as the purchase of machinery and equipment;
  • reimbursement of the cost of interest on loans obtained from Russian credit institutions and loans received in agricultural credit consumer cooperatives.
There seems to be a lot of reimbursements which will go down well with the industry but not entirely sure how that will be funded.